Coronavirus to affect electronic supply chains, 5G: Page 2 of 5

February 14, 2020 //By Omdia
Coronavirus to affect electronic supply chains, 5G
The spread of coronavirus is impacting diverse and interconnected sectors of the electronics industry, potentially dirupting 5G deployment.

China’s smartphone market weakens

China is the world’s largest smartphone market, accounting for 27 percent market share in 2019, according to the Mobile Handset Database – Country report from Omdia.

In its third-quarter forecast update, Omdia predicted that the Chinese market would stop declining and start to rebound in 2020. However, due to the coronavirus crisis, Omdia now believes the Chinese market is likely to suffer another contraction in unit shipments.

The number of smartphones shipped to China annually is expected to decline to 373.9 million units in 2019, a 4 percent decrease from 390.8 million units in 2018. The biggest negative impact will be felt in Chinese domestic sales. As the outbreak period lengthens, weakening demand will extend to other regions.

The extent of the impact will depend on the duration of the epidemic. Omdia is currently evaluating different time scenarios and their expected impacts on Chinese smartphone demand.

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